Hofstede's Cultural Dimensions and Management Styles
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Hofstede's Cultural Dimensions Explained
Power Distance Index (PDI): The extent to which the less powerful members of society accept that power is distributed unequally.
- High PDI: High dependence, inequality accepted, hierarchy needed, superiors inaccessible, privileges exist, change by revolution, respect for old age.
Individualism vs. Collectivism (IDV): People only look after themselves and their immediate family (Individualism).
- High IDV: Focus on "I," loss of self-respect and guilt if obligations to self are unmet, freedom valued, loyalty to family, task has priority over relationships.
Masculinity vs. Femininity (MAS): The dominant values are achievement and success (Masculinity).
- High MAS: Need to excel, tendency to polarize, live in order to work, "big and fast are beautiful," admiration for the successful.
Uncertainty Avoidance Index (UAI): People feel threatened by uncertainty and ambiguity and try to avoid such situations.
- High UAI: Anxiety, urge to work hard, stress, showing of emotions accepted, need for rules, need for consensus, conflict is threatening, deductive education.
Long Term vs. Short Term Normative Orientation (LTO): People show a future-oriented or pragmatic perspective rather than a short-term one.
- Long Term Orientation: Many truths, pragmatic approach, acceptance of change, perseverance, emphasis on obligations.
Indulgence vs. Restraint (IVR): People express their desires and impulses. Relatively weak control is called indulgence and relatively strong control is called restraint.
- High IVR (Indulgence): Optimism, positive attitude, higher importance of leisure, smiling, high spending.
Management Techniques Correlated with Cultural Profiles
- Management By Objectives (MBO): Low PDI, High IDV, High MAS, Low UAI. (Example: Anglo-Saxon countries).
- Management By Exception: Low PDI, High UAI, High MAS, High IDV. (Example: Germany).
- Management By Intuition: Low MAS. (Example: Network Countries - Scandinavia).
- High Profile Management: High PDI, High IDV. (Example: France, Belgium).
- Participative Management: Low PDI, Low MAS, High IDV, Low UAI. (Example: Network Countries).
- Quality Circles: Low MAS, Low IDV, High UAI. (Example: Spain).
- Individual Incentives: High IDV, High MAS. (Example: USA).
Culture: Three Levels of Heredity and Experience (Pyramid Top to Bottom)
- Individual – Inherited/Learned
- Collective by group – Learned
- Common to all Mankind – Inherited
Onion Diagram (Four Circles from Inside Out)
- Symbols: Words, gestures, images.
- Heroes: Role models, founders.
- Rituals: Religions, meetings.
- Practices (National Culture; Hofstede Model): Values.
Cultural Adaptation Curve (V-shaped graph; X=Time, Y=Before Travel)
Stages include: Emotion and anxiety, tourist phase, adaptation and alarm, cultural shock, experimentation, start of the adaptation.
Specific National Profiles
Contest Profile (English)
Low PDI, High IDV, High MAS, Low UAI.
Network Profile (Nordic)
Low PDI, High IDV, Low MAS, Unknown UAI.
Machine Profile (German Speakers)
Low PDI, High IDV, High MAS, High UAI.
Solar System Profile (FR, SPA, ITA, BEL, POL)
High PDI, High IDV, Unknown MAS, High UAI.
Pyramid Profile (BRA, RUS, TURK)
High PDI, Low IDV, Unknown MAS, High UAI.
Family Profile (Asia Pacific)
High PDI, Low IDV, Unknown MAS, Low UAI.
Japan Profile
Unknown PDI, Unknown IDV, High MAS, High UAI.